Carbon Tax Worries Property Pundits
Stakeholders of the building and construction industry fear the introduction of the carbon tax will negatively affect their business this coming year, according to Master Builders Australia.
A recent survey of the sector reveals that 88 per cent of those polled feel that the tax will prompt people to hold back on construction plans and new home purchases.
"Industry is trying to come to terms with a host of unknown factors. This includes how to deal with supply cost increases and how they can be recovered in new and existing building contracts," Master Builders Australia chief executive officer Wilhelm Harnisch said.
"Further, new homebuyers are delaying their decisions as they assess the impact of the carbon tax."
"This confirms other surveys that show consumers are already exercising even greater caution over fears of increased cost of living."
With building activity already quite low, Mr Harnisch fears that profit margins will take an even larger hit as a result of the carbon tax.
Meanwhile, government sentiment regarding the impact of the new tax seems to be at odds with consumer behaviour.
Mr Harnish calls upon the government to open dialogue in an attempt to bridge these differences.